AMERICAN REBEL HOLDINGS INC

Increasing Throughput Without Simply Adding More Cost

One of the most important potential benefits of the lean realignment is increased manufacturing throughput.

Manufacturing capacity is not determined only by the number of employees, machines or square feet inside a building. It is also determined by how effectively those resources work together.

A poorly flowing process can leave equipment waiting for components, employees waiting for the next operation, materials traveling unnecessary distances or partially completed products sitting between manufacturing stages.

Those delays consume time and capacity without creating additional finished product.

Champion’s lean initiative is designed to attack those inefficiencies throughout the production process.

By improving manufacturing flow and reducing time that products spend waiting between operations, Champion believes it can increase the amount of finished product generated by its existing manufacturing infrastructure.

That creates the potential for meaningful operating leverage.

To the extent Champion can increase output without requiring proportional increases in fixed costs, factory space, labor or capital equipment, the company can improve the economics of each incremental unit produced.

“We want more of every manufacturing hour devoted to actually building safes,” Mihalek said. “The opportunity is to get more output from the resources we already have while creating a structure that can support additional growth. That is good manufacturing discipline, and it is also good business.”